Key Highlights
- Canadian travel to the U.S. has dropped significantly, with road trips down by 23% and air travel by 2.4% in February 2024.
- The decline could lead to a $4 billion economic loss in 2025.
- Canada’s biggest travel agency, Flight Centre, has reported a 40% decrease in U.S. bookings.
- The U.S. hospitality sector, heavily reliant on Canadian tourists, is expected to face serious setbacks.
A Major Shift in Canadian Travel Habits
A growing number of Canadians are choosing to stay away from the U.S., leading to an unexpected hit to the American economy. According to new data, road trips from Canada to the U.S. saw a sharp 23% drop in February, while air travel dipped by 2.4%. Experts warn that if this trend continues, it could result in over $4 billion in losses by 2025.
Flight Centre, Canada’s largest travel agency, confirmed a steep 40% decline in U.S. bookings last month compared to February 2023. Even prebooked trips have been affected, with a 20% cancellation rate in recent months. While the U.S. Travel Association (USTA) had projected an increase in Canadian visitors for 2025, analysts now say this forecast may be overly optimistic.
Why Are Canadians Avoiding the U.S.?
The travel decline is largely linked to new 25% tariffs imposed by former President Donald Trump on Canadian imports. In response, outgoing Canadian Prime Minister Justin Trudeau encouraged citizens to reconsider their U.S. travel plans and support domestic tourism instead. Since Canadian visitors contribute over $20 billion to the U.S. economy annually, their absence is already being felt—especially in border towns that depend on cross-border traffic.
Laurie Trautman, director of the Border Policy Research Institute, says hotel demand in northwestern Washington has dropped by 12% in just the past month. “All signs indicate this is not just a short-term dip but a long-term shift in travel behavior,” she explained.
What’s Next for U.S. Tourism?
Industry experts believe that unless relations between the two countries improve, the travel boycott could extend well into 2025 and beyond. Meanwhile, many Canadians are choosing alternative destinations outside the U.S. “Canadians still want to travel, but they’re exploring other locations,” said Amra Durakovic, head of communications for Flight Centre Travel Group Canada.
This trend isn’t limited to Canada. Mexico, which was also hit with a 25% tariff, has taken retaliatory measures against U.S. imports. However, the Mexican government has not yet called for a travel boycott. Interestingly, the USTA has predicted an 18% increase in Mexican visitors in 2025 despite tensions.
Final Thoughts
With millions of Canadians rethinking their travel plans, the U.S. tourism industry faces a major challenge. If the trend continues, local businesses, especially in border towns, could see devastating losses. Whether policymakers take steps to mend relations or not, one thing is clear—Canadian tourists are sending a strong message, and the U.S. economy is feeling the impact.
